Tommo, pwpl, none of us can give financial advice, so I can only say what I am doing and why...
Yes, CAPO will cease trading on or just after June 23rd, and at that stage, you have until June 30th to send in your 30c per CAPO to convert them to fully paid shares with no brokerage fees.(I note we even have a BPay option! Sweet!)
So yes, you either buy them to convert, or sell them prior to June 23rd (I'm not certain that is the close off date, but have seen it elsewhere too, so taking that as going to be pretty close!)
The simple question is - Do you think CAP will be trading higher than this in a months time once it's received another $8 mill cash, and started drilling the major project?
If the answer is yes, then the options are likely to be a better leveraged buy or hold than the main share - but you need to have the funds to convert.
If you think that the share will still be around these levels, then you would probably decide to take a loss.
I believe they'll be trading nearer 60c than 40c, so putting the CAPO back into the 20's - but it's only MY feeling, on the potential of the project and the brilliant cash flow.
So - it's everyone to their own choices.
If my maths pans out - then 40c to 60c in the main share is a 50% rise, but will give over 100% rise in the CAPO. That's the leverage play, though some discount from the 30c could creep in during the week or two before close, and cashed up buyers might snap them up to convert for the right price.
Just my ponderings. Bullish - but happy to hear from the bearish posters too.
CAP Price at posting:
40.1¢ Sentiment: Hold Disclosure: Held
